Articles: Champerty & maintenance

Hong Kong's not-so-free economy
The US-based Heritage Foundation has, as always, ranked HK as the freest economy in the World. For once, the Government doesn't accuse foreign forces of interfering in HK's internal affairs. But this rosy view is not held by those who take the time to study the domestic economy. Here are a few things that Heritage may have overlooked. (4-Feb-2018)

Re bankrupt Ian Chu Chi Ho
HK Court of First Instance, 21-Jan-2016
Application by money-lenders in what we call the "Chung Nam Network" for the removal of the bankruptcy trustees is dismissed. The trustees have entered into a funding agreement and are looking into "a number of apparently suspicious transactions arising from the relationship of the Bankrupt" with the lenders. Most of the money purportedly borrowed by Ian Chu Chi Ho was paid by the lenders directly HEC Finance 92 Ltd, another company in the network. That was formerly Chung Nam Finance Ltd.

Ocean Grand liquidators get court approval for litigation financing
HK Court of First Instance, 8-Oct-2015
The companies are not named, but from the case numbers we know that they are former subsidiaries of Ocean Grand Holdings Ltd, which collapsed in 2006. The parent company went through a scheme of arrangement and emerged as Zhidao (1220). The liquidators, presumably still Deloitte, can now sue unnamed persons to try to recover money for the bondholders, who as of 2008 were owed about HK$1.2bn.

Angela Ho & Associates v Phyllis Kwong Ka Yin
HK Court of First Instance, 2-Dec-2014
Paragraph 42 and 48: "Since there is evidence before the court to show that Ms Kwong's firm has made contingency fee agreements with the ultimate clients, I consider it my duty to report the matter to the Law Society..."

Trio face court for alleged champerty over HK$7m civil claims
ICAC, 4-Mar-2013
Once again, the medieval law against contingent legal fees (a piece of the action) swings into action. Solicitors and their clients should be free to negotiate any basis of payment that they choose. The same law was abolished in England in 1967.

Winnie Lo Wai Yan v HKSAR
HK Court of Final Appeal, 23-Feb-2012
The solicitor succeeds in her appeal and has her conviction for breach of the law on champerty and maintenance quashed. Bokhary says "nothing which I have said is meant to discourage consideration of legislative reform of the law as to maintenance, champerty or matters relating thereto." Ribeiro says: "I wish to raise for consideration the question whether and to what extent criminal liability for maintenance should be retained in Hong Kong... In England and Wales, criminal and tortious liability for both maintenance and champerty were abolished by the Criminal Law Act 1967..."

HKSAR v Winnie Lo Wai Yan
HK Court of Appeal, 16-Feb-2011
The solicitor convicted of "conspiracy to commit maintenance" in a no-win-no-fee arrangement is granted permission to appeal to the Court of Final Appeal on the question of whether the offence is constitutional.